THE Commission on Audit has instructed its Prosecution and Litigation Office, Legal Services Sector to forward to the Office of the Ombudsman records of transactions involving the release of P5 million from former Sen. Gregorio Honasan’s Priority Development Assistance Fund (PDAF) in 2007.
In a five-page decision released last week, the COA Commission Proper denied the petition for review filed by former Lobo, Batangas mayor Efren Diona asking to set aside a 2016 ruling of the COA Region 6 that upheld the notice of disallowance (ND) against the transfer of the P5-M PDAF to a non-government organization (NGO).
The audit team issued the ND on findings that requirements set under COA Circular No. 2007-001 were not complied with, particularly on the absence of the detailed expenditure, accreditation of the NGO by the Bids and Awards Committee (BAC), evaluation of the financial and technical capability of the NGO, and proof that the NGO has equity equivalent to at least 20 percent of the total project cost.
Held liable were mayor Diona, then vice mayor Renato Perez, seven Sangguniang Bayan members, municipal accountant Ethel de Castro, municipal treasurer Leandro Canuel, a barangay chairman, and the Sangguniang Kabataan president. Focus on Development Goals Foundation, Inc (FDGFI), the recipient NGO, was also included for receiving the money.
In his appeal, Diona said he relied in good faith on Honasan’s choice of FDGFI as project implementer hence it is the former senator who should be held liable.
He added that he simply acted on the resolution of the Sangguniang Bayan when he released the P5 million to the NGO to implement the livelihood projects.
The COA disagreed with his arguments.
“When Mayor Diona approved the DV (disbursement voucher), he certified to the correctness of the entries or warranted the legality of the transaction subject thereof, among others: that the expenses incurred were necessary and lawful, and the supporting documents are complete. But apparently, the livelihood projects, …were implemented without complying with the guidelines in the granting, utilization, accounting and auditing of funds released to NGOs,” the commission noted.
